The EU Commission emphasises it is still in charge of the UK

Chancellor of the Exchequer is forced to ask EU for permission to give Coronavirus aid to SMEs

Yesterday in Brussels it was announced that the Rt Hon Rishi Sunak MP, Chancellor of the Exchequer, has now been allowed by the EU Commission to help British businesses during the Coronavirus outbreak, provided his measures continue to meet new EU rules.

However the EU Commission made it perfectly clear to the UK government that it is the EU which is still in charge of large swathes of law in the United Kingdom.

Brexit Facts4EU.Org Summary

“According to the UK Withdrawal Agreement, during the transition period, the entire body of EU law continues to apply to, and in, the UK as if it were a Member State. This includes all EU rules relating to State aid.”

- EU Commission statement, Brussels, 25 Mar 2020

Boris and Rishi had to ask Brussels for permission to govern the country

It is now clear that the UK Government was forced to request permission from the unelected bureaucrats of the EU Commission, in order to help small to medium-sized entreprises (SMEs) in the UK to survive during the current Coronavirus crisis.

The UK Treasury was required to notify the EU Commission of two separate aid schemes to support SMEs affected by the Coronavirus outbreak. These two aid schemes both had to meet new EU criteria.

Rishi Sunak’s two financial aid schemes are:

1. The ‘Coronavirus Business Interruption Loan Scheme’ (CBILS)

This provides guarantees for 80% of loan facilities for SMEs with a turnover of up to £45 million, to cover their working and investment capital needs.

2. Direct grants to support SMEs

The overall budget for this scheme is currently £600 million and it is designed to support any SMEs affected by the Coronavirus outbreak.

The EU Commission has only granted temporary permission

The EU will allow these two schemes to run only until 30 Sep 2020. After that, Rishi Sunak must ask Brussels for permission to extend until 31 Dec 2020.

In the case of the direct grants, the EU’s new rules insist that these be limited to €800,000 (around £734,000 GBP) per company. Furthermore, the grant amount per company is linked to the market sector in which the company is active.

It is the EU Commission that has decided these rules and the British Government must comply or face fines. The British Government had no say whatsoever in the decisions made by the EU.

The beneficiaries of the schemes are SMEs active in all market sectors having temporary financial difficulties due to the economic impact of the Coronavirus outbreak.

Observations

‘You vill obey’

Despite the UK having formally ceased to be a member of the EU on 31 January 2020, it has not left the European Union in practice. Yet another example of this was in full evidence in Brussels yesterday, as the unelected bureaucrats of the EU Commission continued to flaunt their power over the elected United Kingdom Government.

The national disgrace that is the EU Withdrawal Agreement allows the EU to create new rules, regulations, laws and directives. The United Kingdom has absolutely no say in the drafting of these and no veto over their entry into force.

A classic example of this is the EU’s new “Temporary Framework” which replaces existing financial regulations. After the UK had “left” the EU on 31 Jan 2020, the new regulations were produced by the EU Commission bureaucrats and nodded through by the EU27. The UK had no say and no veto, but is now subject to these new laws.

The UK : an EU colony, without a vote

Brexit Facts4EU.Org was vociferous in condemning the international treaty that is the EU Withdrawal Agreement. We were the first to describe it as denoting ‘colony status’ on the United Kingdom. Jacob Rees-Mogg subsequently referred to this as the UK becoming a “vassal state”.

For years we warned about the actions of Mrs May and her Remainer civil servants. As recently as September last year we warned Boris and the public again, and produced one of our famous “Brexit one-pagers” which readers can still access.

In November 2019 when Boris came back from Brussels with his “Mrs May v2” Withdrawal Agreement (without the NI Backstop), we warned again, and produced a new version of our “Brexit one-pager”.

We continue to consider this UK-EU treaty to be a disgrace.

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[ Sources: EU Commission ] Politicians and journalists can contact us for details, as ever.

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Reader Comments 26

1. Tom B , Thursday, March 26, 2020, 07:57:

EU delusions of grandeur

2. Peter C , Thursday, March 26, 2020, 08:00:

Just call an end to this EU c**p. There is enough going on in the UK without wasting time & money on talks that are going nowhere

3. Ashley Great Britain , Thursday, March 26, 2020, 08:23:

The default position should now be that we leave on WTO terms,If we can't conclude a FTA that is beneficial to the uk because of covid19.
If talks can't be managed in this crisis,There must be no extension.That's the way round it must be.

4. Brian , Thursday, March 26, 2020, 08:31:

Stop paying asap

5. Doug, Edinburgh , Thursday, March 26, 2020, 09:14:

You have again highlighted all that was wrong with that awful woman May's Withdrawal Treaty. Here we have new EU laws that were made over our heads.
We have EU taxation with no representation. Didn't our American colonies have something to say about that a couple a centuries ago?

6. Barbara Jell , Thursday, March 26, 2020, 09:16:

How humiliating! And we are paying them £50 million a day for permission to help our own people. I feel sick!

7. Paul A , Thursday, March 26, 2020, 09:24:

This is yet more evidence (should it be needed) that becoming independent is the wisest decision that we could have taken.
Now let's go WTO...and actually be free of this imperialist empire.

8. William Pentelow , Thursday, March 26, 2020, 09:37:

My god, we have become pathetic.

9. Peter H , Thursday, March 26, 2020, 09:39:

Tell them we are leaving with immediate effect! No fish, no pay, no play!

10. Sydney Ashurst , Thursday, March 26, 2020, 09:44:

Perhaps it is a hollow empire, the Commission, EU Parliament and the Brussels bureaucracy are marching on their own, Covid 19 has caused everyone else to flee. In order to save their economies member states will ignore any rules.